Oregon Governor Supports Record $3 Billion Dollar Corporate Tax Hike
The plan is supported by labor unions, and Thursday Oregon's controversial Governor, Kate Brown, signed off on the idea. Measure 97, as it's called, would levy the largest corporate tax increase in state history, on the state's biggest 1,000 companies.
Gov. Brown, borrowing a page from the progressive playbook, said Oregon's tax system is unfair and burdens families, while allowing corporations to avoid paying larger amounts.
Labor unions have been supporting the idea, and now Brown does too. Although officials say the money would be used for various governmental programs, the measure does NOT state specifically how the money will be spent, much to the concern of GOP legislators.
According to a study done of the idea, Measure 97, as it will appear on the ballot this fall, is actually known as Initiative Petition 28. The study, done by the non-partison Legislative Review Office, shows the measure would actually cost each Oregonian about $600 more in year in increased costs.
The costs would result from increased prices from the affected companies. About 106 companies in Oregon who make over $250 million a year would carry about 50% of the burden. The measure would also dampen personal income growth about 1%. The companies would have to raise consumer prices to offset the tax hikes.
However, while Oregonians are paying more in costs and seeing a little less income growth, public sector government jobs would grow because the state would have $3 billion more to spend.
Ironic that a bill touted as easing the tax burden on "little people" will actually end up cost them hundreds more. Echoing the progressive playbook, Gov. Brown and union supporters of the plan say it's time for large companies to pay their fare share.
It's interesting to see how labor union support of this idea will affect which unions get contracts and work projects from these companies who will be paying the tax.